I think they use armatures/skeletons in blender, i dont know any other way to do this comfortable so...
I think glest you wont need a skeleton-base animationthing unless you want something like ragdoll or stuff. Morphing and else can be done by the point-interpolation which you nicely extended for useability (thanks again
).
Also i think a ragdollsytem will need much more artistic skills, too, as the modell is much more likely to act "weird", means sometimes if i try to make an animation i must give up an idea (like let the man taking a bag over his shoulder from ground) because the model wont look good at some skeleton-situations. Thats why i had to turn the thrall for northmenmod in order to let him pick up the bag.
Same goes for raising weapons over head. Sometimes it looks good sometimes doesnt...